Blogs| Contact Us| Log In| Search Here

Skip Navigation LinksFSOkx Home > News > Detail

Search News

Keywords
Date From To

News Archive

Year 2017 (49)
Year 2016 (87)
Year 2013 (3)
Year 2012 (35)

News

Bookmark and Share

Financial Choice Act Still Needs Work: Independent Mortgage Bankers

The Financial CHOICE Act (FCA) that recently passed the House Financial Services Committee provides regulatory relief for independent mortgage bankers (IMBs). The FCA curtails the Consumer Financial Protection Bureau’s authority in certain areas that affect IMBs such as eliminating CFPB exam authority, ending CFPB authority to audit third party vendors, and eliminating CFPB actions based on unclear standards inherent in UDAAP.  But one additional provision is needed to ensure that small IMBs are treated the same as banks are under the bill.

IMBs are supervised and regulated by every state in which they do business. But despite the fact that IMBs did not cause the housing crisis, federal laws have significantly expanded their regulatory compliance burden in the wake of that crisis. Olson explains that with passage of Dodd-Frank, even the smallest IMB is subject to the dual consumer regulatory jurisdiction of both the CFPB and the states along with new Dodd-Frank mortgage rules. Yet, this dual regulatory process for IMBs currently is not applied to 99% of banks that have been exempt from CFPB exams and enforcement since the passage of Dodd-Frank.

The FCA expands these exemptions to the nation’s largest banks.  Still the question is why even the smallest IMB should not enjoy the same treatment. It is thus encouraged that FCA be amended to provide for a CFPB exemption for smaller IMBs that is identical to the one given to all banks under the bill.

News Characteristics

Date : May 10, 2017
Region : North America
Industry : Mortgage Companies
Function : Regulation and Compliance
Sub-Function : Dodd-Frank Act